Delivering the budget, Hunt said that the Office for Budget Responsibility expects housing activity to slow over the next two years, “so the stamp duty cuts announced in the mini-Budget will remain in place, but only until 31 March 2025.”
Quilter mortgage expert Charlotte Nixon says: “We are now living in very different times and even with the stamp duty cut in place house prices are likely still to suffer. If by then the housing market is still not back on its feet the government may choose to extend the cut.”
MPowered Mortgages managing director of mortgages Emma Hollingworth explains that the decision to extend stamp duty cuts “is a very welcome measure that will bring a degree of continuity, stability and security to a market that continues to be at the whim of wider economic volatility”.
“This will give those looking to buy a home time to consider their options and, with brokers’ support, to make the best decision for them, knowing that they can do not have to rush in order to benefit from the cuts.”
Hollingworth adds: “Importantly, today’s announcement offers homebuyers, brokers, and lenders alike a degree of confidence by providing a longer-term view – something that has been markedly absent from the housing market for some time now.”
“Even though the tax break will only last until 2025, it’s a welcome move by the government as we move through this difficult period for homebuyers and the housing market.”
Meanwhile, Just Mortgages national operations director John Phillips says while the budget may seem like a “non-event” where the housing market was concerned, “it was arguably just what was needed”.
Phillips comments: “With the rest of the economy changing around us, the housing market will now benefit from stability rather than further changes.”
“With inflation at 11% the housing market may continue to slow for some time but even then house prices are unlikely to be less than they were even a year ago.”
“Now it is time for brokers to address the cost-of-living issues with their clients, ensuring that all their clients have protection in place and reaching out proactively to carry out financial reviews to ensure that their clients are in the best financial position they can be.”
Elsewhere, Mortgage Advice Bureau head of lending Brian Murphy says it’s “heartening to see the government devote a further £6bn to insulating the UK’s ageing housing stock, as the net zero deadline of 2050 starts loom closer”.
“The responsibility of solving energy efficiency in our homes is yet to be fully claimed, and while it may be a joint effort between homeowners, lenders, councils and the Government, it’s good to see some solid investment promised – better insulated homes also mean lower bills and will go some way to solving the cost of living crisis.”
“What will be interesting to note is how easy the government makes it for homeowners to apply for government support to improve the efficiency of their homes – previous green home initiatives have seen poor take-up or been abandoned completely.”
Former RICS residential chairman and north London estate agent Jeremy Leaf explains that “with all these financial statements, sometimes it’s as much what the chancellor doesn’t say as what he does, with the full implications becoming apparent at a later date”.
“On the face of it, the chancellor appears to have done very little to compromise the property market and number of transactions, which is good news. Of course, there will be less money in people’s pockets when it comes to buying property and worries about rising interest rates will remain.”
“There may be an issue for larger development projects where investors and builders will be thinking about longer-term implications for the stamp duty changes which are scheduled for March 2025.”
“The capital gains tax changes are disappointing as they could have a significant impact on the rental sector. The fact is that we need landlords; everyone knows rents are too high and there are not enough affordable homes to sell or for rent.”
“We want to encourage landlords to stay in the sector and new ones to enter the market, reducing the upwards pressure on rents and stemming the flow of departure.”
“Hopefully, landlords won’t sell now before this measure is introduced, as that will be bad not only for the rental market but the sales market too, as it will increase supply in the latter, reducing property prices more rapidly and therefore undermining confidence. If properties flood the market as a result, it won’t be good for sales or lettings.”
